Benefits of a specialised property manager
If you’ve owned investment property for any length of time, you know that managing a rental can be financially rewarding. At the same time, you’ve also likely discovered that property management requires a large commitment of time and effort.
While it may make sense to take the do-it-yourself approach if you’re a handy person, live close to your property and don’t mind devoting several hours per month to the task, in many cases this just isn’t practical – especially if you hope to expand your investment portfolio. With this in mind, here are some critical tasks a property manager can help you with.
While looking through the classifieds to see what other landlords are charging for similar properties is a fine way to ballpark your rent price, a good property management company will conduct a thorough market valuation in order to set a rental price for your property, ensuring that you achieve the perfect balance between maximizing monthly income and maintaining a low vacancy rate.
If you’ve ever worked in a billing department, you know that securing payment from clients can be difficult, not to mention awkward. Property management companies have efficient, tried-and-true systems in place to effectively collect rent and maintain on-time payments. You’ll find this particularly important if you have a limited number of properties and collecting payments on time is crucial to maintaining your cash flow.
Through long experience, a property manager will know exactly where to market your property and how to craft compelling advertisements – a significant advantage when it comes to filling your properties quickly and avoiding long vacancies.
Experienced property managers are experts at finding good tenants and will take care of all the details – including background checks, running credit reports, verifying employment and collecting previous landlord references.
In addition to finding good tenants a property management company will manage all aspects of the tenant-landlord relationship. The property manager will handle both routine and emergency maintenance, take care of routine inspections and manage any situations where conflict resolution is required.
Property management companies have relationships with maintenance workers, tradesmen, contractors, suppliers, and vendors, that it’s almost impossible for an independent landlord to duplicate. Not only will your property manager get you the best work for the best price, but they’ll also oversee any necessary maintenance projects.
There is a multitude of laws and regulations to abide by when renting and maintaining your rental property. A property manager can help you avoid hefty fines by keeping your property up-to-date and in compliance with these regulations.
If you manage your own properties, you’re pretty much limited to investment opportunities within a tight radius of your own home. By hiring a property manager, you can take advantage of investment deals in any location you wish.